Financial Daily from THE HINDU group of publications
Friday, Oct 07, 2005
Financial Daily from THE HINDU group of publications Friday, Oct 07, 2005 |
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Money & Banking
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Forex Rupee firm; gilts recover Our Bureau
MUMBAI: The rupee remained almost unchanged on Thursday as the US currency weakened against other major currencies on the one side and there has been local demand for dollars from importers, resulting in an overall neutral impact. The domestic currency opened at 44.20/22 and touched an intra-day low of 44.30. It closed at 44.2750/2850, slightly lower than Wednesday's 44.27/28. According to dealers, the dollar weakened because the US data released on Wednesday showed that the US non-manufacturing sector had recorded less growth than anticipated. However, a dealer at a private bank said that demand from importers and reports about FII outflows caused the rupee to dip again. In the forward market, the 6-month premium closed at 0.82 per cent (0.77 per cent) and the 12-month premium closed at 0.72 per cent (0.7 per cent). Bond prices initially fell by 15-20 paise ahead of the auction held today. However, they recovered by almost 75 paise as RBI in a landmark decision rejected all the bids for the Rs 6,000 crore auction of the 11.83 per cent -9 year-2014 paper as the dealers asked for very high yields on the paper. Dealers said that the auction of an illiquid paper like the 11.83-9 year 2014 paper had dampened the sentiments. But the rejection of the bids was perceived as positive for the market. The 10.25-16 year-2021 paper opened at Rs 125.08(7.50 per cent YTM), dipped to Rs 124.75 but closed at Rs 125.43 (7.46 per cent YTM). The 7.37 - 9 year-2014 paper opened at Rs 102 (7.05 per cent YTM) fell to Rs 101.70 and closed at Rs102.26 (7.01 per cent YTM). The 7.38-10 year-2015 paper was dealt at 7.11 per cent YTM. The call rates remained firm at 5.05-5.10 per cent. In the one-day reverse repo auction, the RBI received and accepted 37 bids amounting to Rs 27,675 crore. In the CBLO market, there were 221 trades for Rs 13,463.55 crore in the rate range of 4.85-5.17 per cent.
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